Don't only aim for range-bound markets! You'll lose the ability to avoid risk in trending markets.
Aiming for ranging markets is wonderful, but
if you only chase range markets
even if you are not averaging down
when a trend market (a non-retracing trend) comes, it becomes “unavoidable to avoid”
When it comes to range market strategies, people emphasize stop losses, but
even if you value them, they are “meaningless”
To put it more plainly,
because a market appears that makes them meaningless
A non-retracing trend market is very troublesome when it appears
Therefore
As a common stop-loss pattern in range markets
“stop out when it returns”
is a wonderful strategy, and
I have said this quite a bit in products and the like,
but you also need to think about it from a market-based perspective to truly utilize it
“Simply following a strategy isn’t enough.”
I’ve often mentioned this in related products when adding adjustments
More like a stop-loss pattern
Stop-losses basically work when it returns
However, when the market shows strong signals that it might not return,
you must cut losses before it returns
But this market itself occurs randomly
(When range markets are the only ones appearing and you’re feeling profitable, it’s even easier to see this,
and conversely, if only such markets come, moving to a trend strategy in advance makes them disappear
Ultimately, the market reflects traders’ expectations in that way
Keep in mind that what you think, the other side is thinking as well
Thinking about various things, you decide when to cut losses
Progressing with an added angle makes it troublesome
But in the end
Stop-loss or hold, etc.
Trend or range
It’s a simple binary choice
Yet, even if the nature is simple,
the criteria for judgment are more complex
Stop-losses are a very important line
It becomes an important line
at the boundary between range markets and trend markets
Therefore
Rather than chasing only range markets,
you should also have a perspective on trend markets
It would be better to continue a range-market–focused logic
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